This is the presentation outlining the business plan I wrote as part of my graduate work in sustainable business practices.

1. Just CrÊpes Crêperie & Café Anna Guyton May 2009

2. Business Description Just Crêpes will be a local crêperie and café based in Laramie, Wyoming focusing on sustainable business practices.

3. Products/Services Made-to-order crêpes made with Fair Trade, organic and locally-sourced ingredients Healthy, affordable, and versatile Fair Trade coffees and teas Casual dining/studying atmosphere Wireless internet available Resources for learning about sustainable business practices

4. Benefits to the Customer Fast less than five minutes per customer. Convenient near the University of Wyoming campus Healthy lower-fat, lower-calorie, and lower-cholesterol alternative to tortillas all toppings locally-sourced and/or organic Unique Crêpes resemble a cross between a pancake and a tortilla Learn about sustainable business practices and see them in action Nearest crêperie to Laramie is in Fort Collins, CO Inexpensive Cost of producing crêpes is very low, both for sourcing ingredients and for energy inputs necessary for production competitive with other fast food options Coffee and tea prices will be comparable to other local cafés. Sustainable Survey: potential consumers highly value sustainable business practices

5. Incorporating Sustainability Sourcing local, Fair Trade, organic Minimize energy consumption Source energy from renewable resources Energy-efficient appliances Minimize waste Reusable dishes Recyclable/compostable/biodegradable to-go packaging Recycling/compost in café Food donations

6. Market Fast-casual café style restaurant According to www.fastcasual.com this style of restaurant has double-digit growth rates while the rest of the food industry is in decline No Laramie competition that offers crepes to go Creperies are very popular in Europe (esp. France) but have yet to boom in America Healthy option in food served fast

7. Competition Fast food: Taco Johns, Taco Bell, Wendy’s, McDonald’s, Arby’s, Burger King, Subway, and Quizno’s Local cafes and restaurants: Sweet Melissa’s, Home Bakery, Teriyaki Bowl, The Grounds, Turtle Rock, Coal Creek Coffee, Elements, and Rolling Mills Café

8. Competitive Advantage Sustainable business practices Fair Trade, energy efficiency, waste reduction, recycling, composting, local sourcing, supporting social and environmental causes Crêpes Unique, delicious, inexpensive, healthy Location Close to campus Hours of operation Late night

9. Concept Test & Customer Reaction 91 Laramie residents 44% dissatisfied with restaurant options near the UW campus 40% dissatisfied with café options near the UW campus. Over 60% feel current options near campus are somewhat unhealthy or very unhealthy Almost 75% feel they are also fairly expensive or very expensive Over 75% spend $5.00 or more on lunch on average High level of concern for furthering social causes (60%) and minimizing environmental impact (80%) through their purchases Most feel that current restaurant options in Laramie are unsustainable (75%) as well as café options (61%) When asked if they would patronize a new café focused on sustainability at comparable price points, 88% said yes. Of those that had eaten crêpes before (85%), 94% of respondents liked them fairly well or very much.

10. Target Market & Advertising Students and professors Primarily from UW (location) Consumers looking for “green” and socially-responsible places to do business with Avoid fliers and postal mailers (unsustainable) Focus on electronic marketing Opinion polls, surveys Local news outlets Newspaper, radio On-street signage Samples

11. Organization Sole proprietorship, low cost of setting up and maintaining the business lack of a suitable partner at present Entrepreneur will assume all management roles Spent several months in France eating at crêperies and learning recipes Undergraduate work in International Business Graduate work in Sustainable Business Practices

12. Financial Analysis

13. Pricing Penetration pricing strategy preempt competition and gain market Crêpes competitive with other fast food alternatives ($1.00-$2.00) Coffee and tea prices are also comparable to local café prices ($1.50-$4.50) Most survey respondents pay more than $5.00 for lunch (76%), so it is expected that customers will be willing to pay $1.00-$2.00 per crêpe for a meal

14. Internal Operating Schedule Estimated the number of units (crêpes) the crêperie would produce Competitors’ data Production and sales (in units) estimated to be the same (made-to-order) Cost of producing crêpes ~$0.34 Cost of one cup liquid coffee ~$0.13 Cost of one cup liquid tea ~$0.11 Labor: $8/hr x 2 employees x 8 hrs/day x 20 days/mo increases

15. Income Statement $1.50 avg sale price multiplied by estimated unit sales Estimated marketing expenses ($1500) and administrative expenses ($1200) Both rise with opening of new venue (2012) Rent estimated at $800/month Doubles with opening of new venue Depreciation low ($120), small amount of equipment Doubles with opening of new venue Interest from family loan ($10,000) @ 5% Small net profit every year from 2010-2014 Profit doubles from 2010-2014

16. Balance Sheet Cash: $5000 personal assets, $10,000 family loan, net profit No sales made on credit = no receivables Inventories = COGS – labor (made-to-order) Equipment estimated at $6000 Building’s rented, no other long-term capital Payables calculated as 50% of inventories No accrued wages No expected bank loan Credit cards, short-term loans estimated at $6000

17. Statement of Cash Flows Net cash flows from operations negative until April of first year, then gradually rise until new venue opens By 2014, cash flows are back up to $5030.25 CF from investment = $6000 until opening of new venue CF from financing = credit cards/short-term loans

18. Cash Budget All figures taken from previous worksheets The crêperie is building cash during every time period besides the first year

19. Financial Ratios Current ratio is greater than one, indicating that if all current assets could be converted into cash, they would be adequate to pay all current liabilities. Quick ratio is greater than one, indicating that the venture’s liquid assets are adequate to pay off its current liabilities. A gross profit margin of 36% indicates that 64% of sales is spent to cover the costs of production. Crêperie will earn about 11% operating profit margin on its sales after covering production and other operating costs. As long as the venture can also cover interest and taxes, it will experience a net profit.

20. Survival Breakeven Analysis In 2010, the crêperie will need at least $34,934.45 to cover both its variable costs of producing crêpes and its cash fixed costs At a $1.00 selling price per crêpe, the crêperie will need to produce and sell 34,935 crêpes to produce a zero EBDAT The projected unit sales for 2010 are 49,500

21. Sensitivity Analysis Best case scenario: Third venue within first 5 years Reinvest in products/services Pay back debts quicker Worst case scenario: Inventories reflect sales, so COGS will decrease as sales decrease Second venue will not open Expand operating hours, products, and/or services Fairly easy liquidation Inventory & equipment minimal

22. Exit Strategy Continued growth into profitable franchise Incorporation Sold as a small, local venue